European Equities: COVID-19 and FED Chair Powell in Focus, with No Majors Stats to Consider

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Updated: Mar 23, 2021, 02:07 GMT+00:00

It's another quiet day on the economic calendar. With no stats to consider, COVID-19 news updates and FED Chair Powell testimony will be in focus.

In this article:

CBOE Volatility Index

+1.75%

Economic Calendar:

Wednesday, 24^th March

French Manufacturing PMI (Mar) Prelim

French Services PMI (Mar) Prelim

German Manufacturing PMI (Mar) Prelim

German Services PMI (Mar) Prelim

Eurozone Manufacturing, Services, & Composite PMIs (Mar) Prelim

Eurozone Consumer Confidence (Mar) Flash

Thursday, 25^th March

GfK German Consumer Climate (Apr)

ECB Economic Bulletin

ECB President Lagarde Speaks

Friday, 26^th March

Spanish GDP (QoQ) (Q4)

German Ifo Business Climate Index (Mar)

The Majors

It was a mixed start to the week for the European majors on Monday. The DAX30 and the EuroStoxx600 rose by 0.25 % and by 0.19% respectively, while the CAC40 declined by 0.49%.

There were no major stats from the Eurozone or the U.S to provide direction on the day.

A lack of stats left the majors in the hands of COVID-19 news updates on the day.

Following new containment measures in Italy and France, amongst other EU member states, concerns of a possible wider lockdown pegged the majors back.

In spite of the negative mood, the auto sector delivered support.

The Stats

It was a particularly quiet day on the economic calendar on Monday. There were no major stats to provide the majors with direction.

From the U.S

It was also a particularly quiet day, with no material stats from the U.S to provide the European majors with direction.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Monday. Volkswagen jumped by 6.36%, with BMW and Daimler gaining 2.88% and 0.87% respectively. Continental bucked the trend, sliding by 3.13% respectively.

It was a bearish day for the banks, however. Deutsche Bank and Commerzbank fell by 0.68% and by 1.05% respectively.

From the CAC, it was a bearish day for the banks. BNP Paribas fell by 0.86%, with Credit Agricole and Soc Gen seeing losses of 0.58% and 0.05% respectively.

It was also a bearish day for the French auto sector. Stellantis NV and Renault fell by 1.13% and by 1.37% respectively.

Air France-KLM and Airbus SE saw more red, ending the day down by 1.41% and by 0.28% respectively.

On the VIX Index

It was a 2^nd consecutive day in the red for the VIX on Monday, marking a 10^th day in the red from 12 sessions.

Following on from a 2.92% fall from Friday, the VIX slid by 9.88% to end the day at 18.88.

The NASDAQ rose by 1.23%, with the Dow and the S&P500 seeing modest gains of 0.32% and 0.70% respectively.

The Day Ahead

It’s another particularly quiet day ahead on the European economic calendar. There are no material stats to provide the European majors with direction.

From the U.S, housing sector numbers for February are due out. New home sales figures are unlikely to influence the majors late in the European session, however.

FED Chair Powell is due to testify late in the European session, however, which will draw interest.

A lack of stats will continue to leave COVID-19 news from the Eurozone in focus ahead of FED Chair Powell Testimony.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 14 points.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Bob Masonauthor

With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.